Question: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (CD) company owned restaurants had the following sales and expenses (in Millions) Sales $19,000

 Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's

Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (CD) company owned restaurants had the following sales and expenses (in Millions) Sales $19,000 Food and packaging $17,380) Payroll (4,1100) Occupancy (rent, depreciation, etc.) (3,450) General, selling and administrative expenses (2,8001) (18,430) Operating income $570 Assume that the variable couts consist of food and packaging. Dayroll, and 40% of the general, seling, and administrative expenses a. What is Donald's contribution margin Hound to the nearest million, Colve answer in millions of dollars) millon 1. What is McDonald's contribution margin ratio? How much would operating income increase if same-store sales increased by $1,100 million for the coming yet with no change in the contribution margin ratio or feed costs Round your answer to the closest million million

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!